Tax Relief or Tax Freeze may keep an elderly person or disabled person from losing their home.

by Rod Williams, Nov. 15, 2023- Many low-income families in Nashville struggle to pay their property taxes and high property taxes can put owners at risk of losing their home.  There are two programs in Nashville to help low-income homeowners with their property taxes. These programs cannot help all low-income people, but they can help the disabled and the elderly.

These programs are the Tax Relief program and the Tax Freeze program. If you have a friend or relative who is elderly or disabled and is struggling financially, please make them aware of these programs. If you are a minister, or someone who works at a social service agency, or someone who delivers meals-on-wheels, or the president of a neighborhood organization, or anyone who encounters people with low income, please familiarize yourself with these programs. Making a timely referral may keep someone from losing their home.  The following information and more information about these programs can be found at this link. 

Tax Relief/Exemptions

Do the elderly, disabled or disabled veterans receive any discounts or exemptions?

Eligibility requirements include: age/ disability; ownership/ residency; and income. To apply for property tax relief you must meet these three basic criteria - these are described below. Reimbursements for the property taxes of low-income homeowners who are elderly or disabled are provided by the state of Tennessee. Reimbursements are given on all or part of the local taxes paid on property which the taxpayer owns and uses as his/her residence.

Age/Disability

During the tax year for which they are applying, an applicant must turn 65 on or before December 31. In order to apply as a disabled homeowner, a person must have become disabled on or before December 31 of the year. An applicant may apply if they are awaiting a decision on their disability claim. The state office must receive the final decision by May 31 following the delinquency date. The final decision must indicate their disability began on or before December 31 of the tax year.

Ownership/Residency

An applicant must be able to document that they had ownership of the taxable property during the tax year. Ownership may be documented by a tax bill/receipt, warranty deed, probated will, title or bill of sale for a mobile home.

Income Requirement (Elderly or Disabled Homeowners)

The combined annual income from all sources of all the living owners of record and spouse of the applicant is required and cannot exceed $31,190 for the 2020 calendar year. Annual income from all sources shall include, but is not limited to, Social Security payments after the Medicare deduction, supplemental security income, retirement and pension benefits, veteran's benefits, worker's compensation, unemployment compensation, salaries and wages, alimony, total interest and total dividends. For income from a business, include only the net income or loss after expenses.

Disabled Veterans

Disabled veterans must have a 100% disability rating. The disability must meet specific criteria under service connection, be combat - related or the result of being a prisoner of war. For veteran applicants there is no income limit. Tax relief is paid on the first $175,000 of market value of the home.

Tax Freeze

Under the program, qualifying homeowners age 65 and older can "freeze" the tax due on their property at the amount for the year they qualify, even if tax rates increase. Applicants must turn 65 on or before December 31 during the tax year for which they are applying. Applicants must present:

• Proof of age (birth certificate, Medicare card, driver's license, passport, etc.)
• Proof of ownership (current tax bill or receipt, recorded deed, etc.)
• Evidence property is principal residence (voter registration card, etc.)

Further, income records must be provided showing the total income of all owners of the property during 2020 does not exceed $44,510 for Davidson County. Income records include Federal tax returns, with all attachments, or other items acceptable to the Trustee. All applicants must sign an income verification form permitting the Trustee to contact IRS, SSA or the State Division of Property Assessment to verify income. The application is a public record, but the financial documents remain confidential.

Applications for the Tax Freeze must be filed by April 5, each year, and applicants may contact the Office of the Trustee at 615-862-6330. If you need information concerning the program, please feel free to call us with any questions.

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